Broker versus producer (versus insurer) and Alice example
Is a broker and a producer the same thing? If not, what's the difference?
Also I am confused. In the Alice example, you say Alice's favourite surplus line insurer is domiciled in Alaska. Is the broker also licensed (or not) in Alaska? Why are we commenting on the licensing on the broker in relation to Alaska?
Comments
In general, the difference between a broker and a producer is that the broker works for the insured (the client) and the producer works for the insurer. (So a producer and an agent are very similar.) Some states actually say producers and agents are exactly the same thing. Individual states may vary.
About that Alice example in HI and AK: I'm starting think it was more confusing than helpful. Sorry! Anyway, here are the points I was trying to make:
I hope that made it at least a little more clear. I've made the following point in a few places in different wiki articles, but it's important so I'll say it again:
My final advice in these last days before the exam is make sure you're really solid on the key provisions of the NRRA and can provide a short explanation of each provision. I suspect that's a very likely question.
Ohh ok. Thank you! A little confusion encourages me to learn and remember, so no worries at all.